Forex Trading News – EUR briefly lifted by report of a new aid deal for Greece

Important: This page is part of archived content and may be outdated.

EUR was steady against the USD in volatile trade today as conflicting reports emerged of a potential new aid deal for Greece in order to help the country to meet its funding requirements in the next 2 years. The single currency quickly rose from an opening price of $1.4286 to $1.4374 after Dow Jones News reported that Greece could receive aid totaling 60 billion euros as soon as June. EUR/USD however pulled back after Greece denied the report.

CHF fell to session lows versus the USD and the EUR after Swiss CPI inflation rose 0.1% month on month in April, well below forecasts and denting the chance of a Swiss rate hike in June. EUR/CHF opened the session trading at 1.2513 and it quickly jumped to a session high of 1.2632. USD/CHF opened the session at 0.8758 and it jumped to 0.8804 after the release of the data.

GBP climbed to a 1 month high versus the EUR today after better than expected British retail sales data for April. British retail sales rose by 5.2% in April, their fastest annual pace in 5 years, and house prices fell more slowly, two surveys showed today, but the outlook for Britain remained gloomy. EUR/GBP fell as low as 0.8719, its lowest since April 6, though it pared some losses after a media report said a new deal for indebted Greece could come in June. Later in the day the single currency gained momentum and the pair moved higher to hit 0.8790.

GBP fell versus the USD to $1.6325, and technical analysts said it could fall further as it had broken through a head and shoulders pattern at $1.6455. Markets are not now fully pricing in a BoE rate hike until at least December. The central bank is expected tomorrow to further

EUR was up versus the JPY at 115.35 yen after sliding to a 6 week low in Asian trade at 114.78 yen. USD was up 0.4% at 80.58 yen, well above a seven-week trough of 79.55 yen hit last week.

Risk Warning: Forex, Commodities, Options and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you fully understand the risks involved and do not invest money you cannot afford to lose. Please refer to our full Risk Disclosure.

Important note: Trading Point does not provide services for citizens of the United States of America.